Maryland Bill of Sale

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A Maryland bill of sale should include the car’s make, model, year, and VIN, information about the buyer and seller, and the date of sale. It should also state the selling price of the vehicle.
A bill of sale is an essential aspect of every private car transaction but only legally required in some states. In Maryland, a bill of sale is only legally required if the car is more than seven years old or is new and being sold for less than the book value
But even if those standards don’t apply to you, completing a bill of sale as a record of the transaction is always a good idea.
The car insurance comparison and broker app Jerry is breaking down everything you need about filling out a bill of sale in Maryland.

What is a bill of sale?

A bill of sale is a receipt for a private sale. In general, it has information on the vehicle you're selling, such as the VIN, the odometer reading at the time of sale, and the purchase price. 
It’ll also include the buyer's and seller's signatures and additional identifying information.
Just because you’ve completed a bill of sale doesn’t mean you’ve legally transferred ownership of a car—only a title transfer legally transfers ownership. 
A certificate of title is a legal document that verifies the ownership of a vehicle. A bill of sale, on the other hand, explains the conditions of your agreement with the other party in writing.

Is a bill of sale required in Maryland?

A bill of sale is only required in Maryland if the following applies to your transaction:
  • The car is seven years or older
  • The car is new and being sold for less than the book value 
Whenever you buy or sell a vehicle, it's usually still a good idea to fill out a bill of sale since it serves as proof of the transaction, the transfer date, and the purchase amount.
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What is required in a Maryland bill of sale?

When you fill out a bill of sale, you’ll need the following information:
  • The vehicle’s make, model, and year
  • The selling price of the car
  • An odometer reading at the time of sale
  • Names and signatures of both buyer and seller
You’ll also need a notary present to witness the signing of the bill of sale. 
You can use the bill of sale form found on Maryland’s Department of Transportation website or make your own, as long as you include all the necessary information.

What should I do after I get a bill of sale?

Whether you fill out your bill of sale, you must complete a title transfer to certify the change in ownership. On your Maryland Certificate of Title, there is a space to list the purchase price (in place of a bill of sale).
If you’re selling the car, you may need to notify the DMV and turn in or transfer your previous license plates. If you’re buying a car, you'll need to register it with the DMV and get new plates.
Make a copy of the bill of sale and file it away for future reference. This protects you if any legal questions come up and serves as a confirmation of the agreement you made.

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After you've completed the bill of sale and the DMV transaction, it’s time to make sure your car insurance is up to snuff. 
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